CHARITABLE PLANNING

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fa-mag . com / subscribe / newsletters . html ing positive impact in the world through their actions , professions and decisions , including financial ones . Advisors who understand and appreciate how philanthropy can help their clients meet their individual priorities will be able to create deeper connections that can lead to further engagement and referrals .

Consider these emotional benefits of charitable giving . It can help clients :

• Identify and orient around their core values ;

• Discover shared goals and passions ;

• Increase multigenerational collaboration and strengthen family ties ;

• Deploy assets in a way that is consistent with their personal priorities ;

• Share their philanthropic vision with others ;

• Create a plan for change and witness — in real time — the positive impact it achieves ;

• Observe and learn from the amazing charitable efforts of nonprofit organizations ;

• Align investments with intention ; and

• Help younger generations develop skills that prepare them for bigger roles in a family foundation or business .

An effective holistic approach considers the emotional advantages in tandem with philanthropy ’ s rational / financial benefits , providing clients with a comprehensive view of all that ’ s possible to achieve with their wealth through giving .

Holistic Guidance Requires Deeper Insights And Expertise

Moreover , an in-depth understanding of the emotional and rational aspects of philanthropy can help wealthy investors make smart decisions with their giving . Advisors who possess such expertise are equipped to have meaningful conversations with their clients from which they can gauge client priorities for giving and provide expert and holistic guidance accordingly .

For example , one of our longtime clients initially established a foundation to help reduce their income tax liability . Years later , however , after selling their family business , the family became more interested in aligning its fortune with its values and began to take a more active role in the foundation . Ultimately , the family ’ s focus expanded from using the foundation to achieve financial goals to addressing the emotional objectives of “ doing good ” and effecting positive change in the world . It ’ s a fairly common illustration of how a client ’ s priorities can evolve over time and how philanthropy can play a key role in addressing both the financial and emotional needs that motivate and define individuals .

Wealth advisors with philanthropic expertise can take a high-level view of their clients ’ entire financial landscape .

As we did with our client , other wealth advisors with philanthropic expertise can take a high-level view of their clients ’ entire financial landscape — including their giving priorities — and provide more nuanced guidance . They can spot inconsistencies and opportunities . For instance , they can weigh when it might be better for a client to invest instead of give … so there will be more wealth for the client to give later . They can also help clients avoid impulsive decisions that might feel right in the short term but may be detrimental in the long term .

What Advisors Should Do Next

Understanding that philanthropic expertise is essential to providing holistic wealth management , advisors should consider incorporating it into their client conversations more consistently and remember to discuss both the rational and emotional benefits of giving . By dedicating time to learning and partnering with the many expert voices on philanthropy , you ’ ll be better prepared for these conversations to include the broader capabilities that clients have come to expect .

HANNAH SHAW GROVE is the chief marketing officer of Foundation Source , the nation ’ s largest provider of technology , administration and expertise for private foundations and planned giving .

24 | FINANCIAL ADVISOR MAGAZINE | JULY / AUGUST 2024 WWW . FA-MAG . COM